• Call Us : 03082533000 (WhatsApp)
  • Email Us : TestPointpk.com@gmail.com
Testpoint Whatsapp group Testpoint Whatsapp group
Sticky Note
The term "crowding out" refers to?
اصطلاح "ہجوم باہر" سے مراد ہے؟
  1. The decrease in private investment that occurs when government borrowing increases
  2. The increase in private investment that occurs when government borrowing decreases
  3. The decrease in government spending that occurs when private investment increases
  4. The increase in government spending that occurs when private investment decreases
Explanation
  • The term "crowding out" refers to the decrease in private investment that occurs when government borrowing increases.
  • When the government borrows more money from the financial markets to finance its spending, it increases the demand for loanable funds, leading to higher interest rates.
  • Higher interest rates make borrowing more expensive for businesses and individuals, reducing their willingness to invest and borrow for private investment projects.
  • This phenomenon is known as "crowding out" because government borrowing "crowds out" private investment by competing for available funds in the financial markets.

Related MCQs

Business through the internet is called?
انٹرنیٹ کے ذریعے کاروبار کو کیا کہتے ہیں؟
  1. E-Commerce
  2. Courier
  3. Credit card
  4. Online shopping
اس سوال کو وضاحت کے ساتھ پڑھیں
If a new national campaign successfully encourages the use of locally manufactured goods over imported luxury items, the most direct result will be?
اگر ایک قومی مہم کامیابی سے لوگوں کو درآمد شدہ مہنگی اشیاء کے بجائے مقامی مصنوعات استعمال کرنے کی ترغیب دے تو اس کا سب سے براہِ راست نتیجہ کیا ہوگا؟
  1. The immediate creation of a regional economic union
  2. An improvement in the trade balance and support for domestic industries
  3. A guaranteed increase in due country's literacy rate and employment ratio
  4. None of these
اس سوال کو وضاحت کے ساتھ پڑھیں
The term 'scarcity' in economies is defined as?
معیشت میں "(کمی/قلت)" کی تعریف کیا ہے؟
  1. Having too many resources
  2. No need to make choices
  3. Unlimited wants and limited resources
  4. None of these
اس سوال کو وضاحت کے ساتھ پڑھیں
The value of imported goods (e.g., machinery, oil) is significantly higher than the value of exported goods (e.g., textiles, rice). This situation best describes a persistent problem known as?
درآمد شدہ اشیاء (جیسے مشینری، تیل) کی قیمت برآمد شدہ اشیاء (جیسے ٹیکسٹائل، چاول) سے زیادہ ہو تو اس صورتحال کو کیا کہتے ہیں؟
  1. Trade Deficit
  2. National Debt
  3. Inflation
  4. None of these
اس سوال کو وضاحت کے ساتھ پڑھیں
Income that is saved and not invested is known as ______?
  1. Deposit
  2. Capital
  3. Hoarding
  4. None of these
اس سوال کو وضاحت کے ساتھ پڑھیں
Test Point Whatsapp Channel

Leave a Reply

Your email address will not be published. Required fields are marked *

1 + 2 = ?



All Rights Reserved © TestPointpk.com